direct tax

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Related to Direct taxation: Indirect taxation

Direct Tax

A tax that cannot be shifted to another person or entity. For example, taxes on income or assets are direct taxes, as the person or organization on whom they are levied must pay them directly. Direct taxes differ from indirect taxes, such as sales tax, which is levied on a seller but is paid by buyers. There is disagreement as to whether a corporate tax is a direct tax or indirect tax.

direct tax

A tax paid by the individual or organization on which it is levied. For example, the personal income tax is levied on individuals, who end up bearing the entire burden of the tax. A direct tax cannot be shifted from the entity on which it is levied. Compare indirect tax.

direct tax

a TAX imposed by the government on the income and wealth of persons and businesses in order to raise revenue, redistribute income and wealth, and as an instrument of FISCAL POLICY in managing the economy. The main forms of direct tax in the UK are INCOME TAX, CORPORATION TAX, NATIONAL INSURANCE CONTRIBUTIONS and INHERITANCE TAX. See BUDGET (GOVERNMENT).

direct tax

a TAX levied by the government on the income and wealth received by individuals (households) and businesses in order to raise revenue and as an instrument of FISCAL POLICY. Examples of a direct tax are INCOME TAX, NATIONAL INSURANCE CONTRIBUTIONS, CORPORATION TAX and WEALTH TAX.

Direct taxes are incurred on income received, unlike indirect taxes, such as value-added taxes, that are incurred when income is spent Direct taxes are progressive, insofar as the amount paid varies according to the income and wealth of the taxpayer. By contrast, INDIRECT TAX is regressive, insofar as the same amount is paid by each tax-paying consumer regardless of his or her income. See TAXATION, PROGRESSIVE TAXATION, REGRESSIVE TAXATION.

References in periodicals archive ?
A team of researchers at the Institute for Austrian and International Tax Law in Vienna introduce students and practitioners to direct taxation, which remains under the jurisdiction of national governments, but is being increasingly influenced by European law.
I believe that the James Review will show that there is room for manoeuvre to make a radical cut in direct taxation in our first year in office - so radical that Gordon Brown won't be able to upstage the Conservative Party in his Budget.
I read that Brussels is already suggesting direct taxation on the citizens of this evil collaboration.
With direct taxation, VAT and a further rise of 10 per cent-plus in our council tax, what are pensioners expected to do with a less than two per cent increase in their pension?
Speaking to members of the Institute of Taxation in Dublin on Friday night, the Tanaiste said that there was a consistent campaign to persuade Ireland and other member states to surrender direct taxation policy decisions to the Union.
But he admitted: "It is a Scotland paid for by fair taxation - direct taxation in preference to indirect taxation.
The PM believes that pledging to peg direct taxation is the best way to keep on side the middle classes responsible for Labour's 1997 victory.
The commission had earlier planned to urge a departure from the country's postwar tax system centering on direct taxation on income by raising the consumption tax, which is levied at the point of a purchase.
Direct taxation in the Arab states is nonexistent or low but can it continue, Middle East editor with the Economist Intelligence Unit.
The provincial governments have been assigned responsibility for: direct taxation for provincial purposes; municipalities; education; hospitals; property and civil rights; administration of civil and criminal justice, and prisons; celebration of marriage; local works and corporations with provincial objectives.
The merit in the direct taxation does not lie only in its contribution towards government revenue but also towards income distribution and sharing of the burden of taxation by the rich.
com/research/xjjnh5/introduction_to) has announced the addition of the "Introduction to European Tax Law: Direct Taxation - Third Edition" report to their offering.